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The final obstacle to Chelsea’s new Stamford Bridge stadium has been overcome (Hussain Nazrul/Herzog and de Meu)

Chelsea have settled a dispute with a neighbour whose objection to the construction of a new £1billion stadium at Stamford Bridge was threatening to hold up the project.

Plans for the redevelopment of the ground into a 60,000-seat arena hit a barrier when the the Crosthwaite family, who own a home nearby, took out a High Court injunction last May over a “right to light”.

The club, which had agreed to compensate most of the affected properties, had stated the obstacle made the project “undeliverable”.

However, in January their request was accepted for Hammersmith and Fulham Council to intervene and compulsorily purchase an interest in land – owned by Network Rail and Transport for London – in order to override the “right to light” principle.

An agreement has now been reached with the Crosthwaites which allow work to start.

“Chelsea FC have reached an agreement to settle the ongoing legal proceedings in relation to rights to light. The details of the agreement are confidential,” the club announced.